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YELLOW SHEET Office of the State Auditor of Missouri |
November 9, 2000
Report No. 2000-115
Some problems were discovered as a result of an audit
conducted by our office in response to the request of petitioners from the City
of Lake Ozark, Missouri.
The
city does not have a formal bidding policy.�
As a result, the decision of whether to solicit bids for a particular
purchase is made on an item-by-item basis.�
Although it appears the city did solicit bids for some purchases, bids
were either not solicited or bid documentation was not retained in some
instances.� Examples include $22,655 for
a loader lease/purchase, $35,438 for an excavator lease/purchase, $1,835 for a
postage meter, $2,996 for police handheld radios, and $1,325 for utility poles.
Formal
bidding procedures provide a framework for the economical management of city
resources and help ensure the city receives fair value by contracting with the
lowest and best bidders.� Competitive
bidding also helps ensure all parties are given an equal opportunity to
participate in the city�s business.
The
board does not review complete listings of all disbursements including the
related invoices.� Several expenditures
were noted which do not appear to be a prudent use of public funds.� Supporting documentation was not available
for some credit card purchases and reimbursement requests.
Accounting
duties are not adequately segregated and improvements are needed in controls
over receipts.�
The
city�s board minutes do not include sufficient detail of matters discussed and
actions taken. The board minutes did not always include an adequate description
of motions made and resolutions passed.�
The minutes and meeting agendas do not document the specific reasons for
going into a closed session.� Furthermore,
the actions taken by the board in closed meetings are not generally recorded in
the regular minutes or otherwise publicly posted.�
The
city has not performed a formal review of the adequacy of the sewer rates.� The city�s audited financial statements have
shown losses of approximately $498,000 and $89,000 in the Sewer Fund during the
years ended December 31, 1999 and 1998, respectively.�
The
city has not entered into formal written agreements for some services,
including sewer, legal, accounting, and cleaning services.� �
The
city�s budgets are not retained with the official minutes and are not signed by
the board to denote approval.� In
addition, budgets prepared by the city did not include some information
required by state law, such as budget messages or general budget summaries
describing the important features of the budget and major changes from the
preceding years.
The
city does not maintain complete records to account for all property owned by
the city.
